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                              PAMRAPO BANCORP, INC.
                           CHANGE IN CONTROL AGREEMENT


      This AGREEMENT is made effective as of January 1, 2002, by and between
Pamrapo Bancorp, Inc. (the "Holding Company"), a corporation organized under the
laws of the State of New Jersey, with its principal office at 611 Avenue C,
Bayonne, New Jersey, and Kenneth D. Walter ("Executive"). The term "Institution"
refers to Pamrapo Savings Bank, SLA, a wholly-owned subsidiary of the Holding
Company or any successor thereto.

      WHEREAS, the Holding Company recognizes the substantial contribution
Executive has made to the Holding Company and wishes to protect his position
therewith for the period provided in this Agreement; and

      WHEREAS, Executive has agreed to serve in the employ of the Holding
Company or an affiliate thereof.

      NOW, THEREFORE, in consideration of the contribution and responsibilities
of Executive, and upon the other terms and conditions hereinafter provided, the
parties hereto agree as follows:

1.    TERM OF AGREEMENT.
      -----------------

      The period of this Agreement shall be deemed to have commenced as of the
date first above written and shall continue for a period of thirty-six (36) full
calendar months thereafter. Commencing on the date of the execution of this
Agreement, the term of this Agreement shall be extended for one day each day
until such time as the board of directors of the Holding Company (the "Board")
or Executive elects not to extend the term of the Agreement by giving written
notice to the other party in accordance with Section 4 of this Agreement, in
which case the term of this Agreement shall be fixed and shall end on the third
anniversary of the date of such written notice.

2.    CHANGE IN CONTROL.
      -----------------

      (a)  Upon the occurrence of a Change in Control of the Holding Company (as
herein defined) followed at any time during the term of this Agreement by the
involuntary termination (or voluntary termination as defined below) of
Executive's employment, the provisions of Section 3 shall apply. Upon the
occurrence of a Change in Control, Executive shall have the right to elect to
voluntarily terminate his employment at any time during the term of this
Agreement following any material demotion, loss of title, office or significant
authority or responsibility, material reduction in annual compensation or
benefits, or relocation of his principal place of employment by more than 50
miles from its location immediately prior to the Change in Control ("Voluntary
Termination"), provided, however, that Executive shall receive no payments
pursuant to this Agreement if such termination is because of his death,
disability, retirement or Termination for Cause.

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      (b)  For purposes of this Agreement, a "Change in Control" of the Holding
Company or the Institution shall mean an event of a nature that: (i) would be
required to be reported in response to Item 1 of the Current Report on Form 8-K,
as in effect on the date hereof, pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"); or (ii)
results in a Change in Control of the Institution or the Holding Company within
the meaning of the Home Owners' Loan Act of 1933, as amended, the Federal
Deposit Insurance Act, or the Rules and Regulations promulgated by the Office of
Thrift Supervision ("OTS") (or its predecessor agency), as in effect on the date
hereof (provided, that in applying the definition of change in control as set
forth under the Rules and Regulations of the OTS, the Board shall substitute its
judgment for that of the OTS); or (iii) without limitation such a Change in
Control shall be deemed to have occurred at such time as (A) any "person" (as
the term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes
the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of voting securities of the Institution or the Holding
Company representing 25% or more of the Institution's or the Holding Company's
outstanding voting securities or right to acquire such securities except for any
voting securities of the Institution purchased by the Holding Company and any
voting securities purchased by any employee benefit plan of the Holding Company
or its Subsidiaries, or (B) individuals who constitute the Board on the date
hereof (the "Incumbent Board") cease for any reason to constitute at least a
majority thereof, provided that any person becoming a director subsequent to the
date hereof whose election was approved by a vote of at least three-quarters of
the directors comprising the Incumbent Board, or whose nomination for election
by the Company's stockholders was approved by a Nominating Committee solely
composed of members which are Incumbent Board members, shall be, for purposes of
this clause (B), considered as though he were a member of the Incumbent Board,
or (C) a plan of reorganization, merger, consolidation, sale of all or
substantially all the assets of the Institution or the Holding Company or
similar transaction occurs or is effectuated in which the Institution or Holding
Company is not the resulting entity; or (D) a proxy statement has been
distributed soliciting proxies from stockholders of the Holding Company, by
someone other than the current management of the Holding Company, seeking
stockholder approval of a plan of reorganization, merger or consolidation of the
Holding Company or Institution with one or more corporations as a result of
which the outstanding shares of the class of securities then subject to such
plan or transaction are exchanged for or converted into cash or property or
securities not issued by the Institution or the Holding Company, or (E) a tender
offer is made for 20% or more of the voting securities of the Institution or
Holding Company then outstanding.

      (c)  Executive shall not have the right to receive termination benefits
pursuant to Section 3 hereof upon Termination for Cause. The term "Termination
for Cause" shall mean termination because of Executive's personal dishonesty,
willful misconduct, conduct damaging the reputation of the Institution or the
Holding Company, breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful violation of any law, rule, regulation
(other than traffic violations or similar offenses) final cease and desist order
or material breach of any provision of this Agreement Notwithstanding the
foregoing, Executive shall not be deemed to have been Terminated for Cause
unless and until there shall have been delivered to him a Notice of Termination
which shall include a copy of a resolution duly adopted by the affirmative vote
of not less than three-fourths of the members of the Board at a meeting of the
Board called and held for that purpose (after reasonable notice to Executive and
an

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opportunity for him, together with counsel, to be heard before the Board),
finding that in the good faith opinion of the Board, Executive was guilty of
conduct justifying Termination for Cause and specifying the particulars thereof
in detail. Executive shall not have the right to receive compensation or other
benefits for any period after the Date of Termination for Cause. During the
period beginning on the date of the Notice of Termination for Cause pursuant to
Section 4 hereof through the Date of Termination for Cause, stock options and
related limited rights granted to Executive under any stock option plan shall
not be exercisable nor shall any unvested awards granted to Executive under any
stock benefit plan of the Institution, the Holding Company or any subsidiary or
affiliate thereof, vest. At the Date of Termination for Cause, such stock
options and related limited rights and any such unvested awards shall become
null and void and shall not be exercisable by or delivered to Executive at any
time subsequent to such Date of Termination for Cause.

3.    TERMINATION BENEFITS.
      --------------------

      (a)  Upon the occurrence of a Change in Control, followed at any time
during the term of this Agreement by the termination of Executive's employment
due to: (1) Executive's dismissal or (2) Executive's Voluntary Termination, the
Holding Company shall pay Executive, or in the event of his subsequent death,
his beneficiary or beneficiaries, or his estate, as the case may be, a sum equal
to three (3) times Executive's average annual compensation for the five (5) most
recent taxable years that Executive has been employed by the Holding Company
and/or the Institution or such lesser number of years in the event that
Executive shall have been employed by the Holding Company and/or the Institution
for less than five years. Such annual compensation shall include base salary,
commissions, bonuses, any other cash compensation, contributions or accruals on
behalf of Executive to any pension and/or profit sharing plan, severance
payments, retirement payment, director or committee fees and fringe benefits
paid or to be paid to the Executive in any such year and payment of any expense
item without accountability or business purpose or that do not meet the Internal
Revenue Service requirements for deductibility by the Holding Company or the
Institution. At the election of Executive which election is to be made prior to
a Change in Control, such payment shall be made in a lump sum as of Executive's
Date of Termination. In the event that no election is made, payment to Executive
will be made on a monthly basis in approximately equal installments during the
remaining term of this Agreement.

      (b)  Upon the occurrence of a Change in Control of the Institution or the
Holding Company followed at any time during the term of this Agreement by
Executive's dismissal or Voluntary Termination, the Holding Company shall cause
to be continued life and medical coverage substantially equivalent to the
coverage maintained by the Institution for Executive prior to his severance,
except to the extent such coverage may be changed in its application to all
Institution employees on a nondiscriminatory basis. Such coverage and payments
shall cease upon expiration of thirty-six (36) full calendar months following
the Date of Termination.

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      (c) Notwithstanding the preceding paragraphs of this Section 3, in the
event that:

           (i)   the aggregate payments or benefits to be made or afforded to
           Executive, which are deemed to be parachute payments as defined in
           Section 280G of the Internal Revenue Code of 1986, as amended (the
           "Code") or any successor thereof, (the "Termination Benefits") would
           be deemed to include an "excess parachute payment" under Section 280G
           of the Code; and

           (ii)  if such Termination Benefits were reduced to an amount (the
           "Non-Triggering Amount"), the value of which is one dollar ($1.00)
           less than an amount equal to three (3) times Executive's "base
           amount," as determined in accordance with said Section 280G and the
           Non-Triggering Amount less the product of the marginal rate of any
           applicable state and federal income tax and the Non Triggering Amount
           would be greater than the aggregate value of the Termination Benefits
           (without such reduction) minus (i) the amount of tax required to be
           paid by the Executive thereon by Section 4999 of the Code and further
           minus (ii) the product of the Termination Benefits and the marginal
           rate of any applicable state and federal income tax,

then the Termination Benefits shall be reduced to the Non-Triggering Amount. The
allocation of the reduction required hereby among the Termination Benefits shall
be determined by the Executive.

4.    NOTICE OF TERMINATION.
      ---------------------

      (a)  Any purported termination by the Holding Company or by Executive in
connection with a Change in Control shall be communicated by Notice of
Termination to the other party hereto. For purposes of this Agreement, a "Notice
of Termination" shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive's employment under the provision so indicated.

      (b)  "Date of Termination" shall mean the date specified in the Notice of
Termination (which, in the case of Termination for Cause, shall not be less than
thirty (30) days from the date such Notice of Termination is given); provided,
however, that if a dispute regarding the Executive's termination exists, the
"Date of Termination" shall be determined in accordance with Section 4(c) of
this Agreement.

      (c)  If, within thirty (30) days after any Notice of Termination is given,
the party receiving such Notice of Termination notifies the other party that a
dispute exists concerning the termination, except upon the occurrence of a
Change in Control and voluntary termination by the Executive in which case the
Date of Termination shall be the date specified in the Notice, the Date of
Termination shall be the date on which the dispute is finally determined, either
by mutual written agreement of the parties, by a binding arbitration award, or
by a final judgment, order or decree of a court of competent jurisdiction (the
time for appeal therefrom having expired and no appeal having been perfected)
and provided further that the Date of Termination shall be

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extended by a notice of dispute only if such notice is given in good faith and
the party giving such notice pursues the resolution of such dispute with
reasonable diligence. Notwithstanding the pendency of any such dispute in
connection with a Change in Control, the Institution will continue to pay
Executive the payments and benefits due under this Agreement in effect when the
notice giving rise to the dispute was given (including, but not limited to, his
current annual salary) and continue him as a participant in all compensation,
benefit and insurance plans in which he was participating when the notice of
dispute until the earlier of: (1) the resolution of the dispute in accordance
with this Agreement; or (2) the expiration of the remaining term of this
Agreement as determined as of the Date of Termination. Amounts paid under this
Section 4(c) are in addition to all other amounts due under this Agreement and
shall not be offset against or reduce any other amounts due under this
Agreement.

5.    SOURCE OF PAYMENTS.
      ------------------

      It is intended by the parties hereto that all payments provided in this
Agreement shall be paid in cash or check from the general funds of the Holding
Company.

6.    EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS.
      -----------------------------------------------------

      This Agreement contains the entire understanding between the parties
hereto and supersedes any prior agreement between the Holding Company and
Executive, except that this Agreement shall not affect or operate to reduce any
benefit or compensation inuring to Executive of a kind elsewhere provided. No
provision of this Agreement shall be interpreted to mean that Executive is
subject to receiving fewer benefits than those available to him without
reference to this Agreement.

      Nothing in this Agreement shall confer upon Executive the right to
continue in the employ of the Holding Company or shall impose on the Holding
Company any obligation to employ or retain Executive in its employ for any
period.

7.    NO ATTACHMENT.
      -------------

      (a)  Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation, or to execution,
attachment, levy, or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to affect any such action shall be null,
void, and of no effect.

      (b)  This Agreement shall be binding upon, and inure to the benefit of,
Executive, the Holding Company and their respective successors and assigns.

8.    MODIFICATION AND WAIVER.
      -----------------------

      (a)  This Agreement may not be modified or amended except by an instrument
in writing signed by the parties hereto.

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      (b)  No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement, except by written instrument of the party charged with such
waiver or estoppel. No such written waiver shall be deemed a continuing waiver
unless specifically stated therein, and each such waiver shall operate only as
to the specific term or condition waived and shall not constitute a waiver of
such term or condition for the future or as to any act other than that
specifically waived.

9.    EFFECT OF ACTION UNDER INSTITUTION AGREEMENT.
      ---------------------------------------------

      Notwithstanding any provision herein to the contrary, to the extent that
payments and benefits are paid to or received by Executive under the Institution
Agreement between Executive and Institution, the amount of such payments and
benefits paid by the Institution will be subtracted from any amount due
simultaneously to Executive under similar provisions of this Agreement.

10.   SEVERABILITY.
      ------------

      If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each
such other provision and part thereof shall to the full extent consistent with
law continue in full force and effect.

11.   HEADINGS FOR REFERENCE ONLY.
      ---------------------------

      The headings of sections and paragraphs herein are included solely for
convenience of reference and shall not control the meaning or interpretation of
any of the provisions of this Agreement. In addition, references herein to the
masculine shall apply equally to the feminine.

12.   GOVERNING LAW.
      -------------

      The validity, interpretation, performance, and enforcement of this
Agreement shall be governed by the laws of the State of New Jersey.

13.   ARBITRATION.
      -----------

      Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a panel
of three arbitrators sitting in a location selected by Executive within fifty
(50) miles from the location of the Holding Company's main office, in accordance
with the rules of the American Arbitration Association then in effect. Judgment
may be entered on the arbitrator's award in any court having jurisdiction;
provided, however, that Executive shall be entitled to seek specific performance
of his right to be paid until the Date of Termination during the pendency of any
dispute or controversy arising under or in connection with this Agreement.

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14.   PAYMENT OF COSTS AND LEGAL FEES.
      -------------------------------

      All reasonable costs and legal fees paid or incurred by Executive pursuant
to any dispute or question of interpretation relating to this Agreement shall be
paid or reimbursed by the Holding Company if Executive is successful pursuant to
a legal judgment, arbitration or settlement.

15.   INDEMNIFICATION.
      ---------------

      The Holding Company shall provide Executive (including his heirs,
executors and administrators) with coverage under a standard directors' and
officers' liability insurance policy at its expense and shall indemnify
Executive (and his heirs, executors and administrators) to the fullest extent
permitted under Delaware law and as provided in the Holding Company's
certificate of incorporation against all expenses and liabilities reasonably
incurred by him in connection with or arising out of any action, suit or
proceeding in which he may be involved by reason of his having been a director
or officer of the Holding Company (whether or not he continues to be a director
or officer at the time of incurring such expenses or liabilities), such expenses
and liabilities to include, but not be limited to, judgments, court costs and
attorneys' fees and the cost of reasonable settlements.

16.   SUCCESSOR TO THE HOLDING COMPANY.
      --------------------------------

      The Holding Company shall require any successor or assignee, whether
direct or indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all the business or assets of the Institution or the Holding
Company, expressly and unconditionally to assume and agree to perform the
Holding Company's obligations under this Agreement, in the same manner and to
the same extent that the Holding Company would be required to perform if no such
succession or assignment had taken place.

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<PAGE>

                                   SIGNATURES


      IN WITNESS WHEREOF, Pamrapo Bancorp, Inc. has caused this Agreement to be
executed by its duly authorized officer, and Executive has signed this
Agreement, on the 1st day of January, 2002.

ATTEST:                                 PAMRAPO BANCORP, INC.


 /s/ Margaret Russo                     By: /s/ William J. Campbell
--------------------------------           ------------------------------
                                           William Campbell
Secretary                                  President and Chief Executive
                                           Officer


WITNESS:


 /s/ Margaret Russo                      /s/ Kenneth D. Walter
--------------------------------        ---------------------------------
                                        Kenneth D. Walter
Secretary                               Executive


[Seal]


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